Retail industry

UK: T-ONLINE SPECULATION DRIVES FREESERVE SHARES

Article Abstract:

Speculation that T-Online, the Internet business controlled by Deutsche Telekom, is planning to make an offer for Freeserve, pushed shares in the UK-based Internet service provider up by 10%. However, some analysts are undecided whether T-Online will make such a move, considering Freeserve's market capitalisation of GB[pound] 4.1bn is less than half its early March peak. Deutsche Telekom, which holds an 80% stake in T-Online, is believed to be examining ways to enter the US market, as well as building the company's presence in Europe.

UK: T-ONLINE MAY BE SOLE FREESERVE BIDDER

Article Abstract:

T-Online, the German Internet group, may be the only bidder for Internet service provider Freeserve. Cable group NTL has withdrawn after weakness in Internet stocks and Terra Networks is busy acquiring Lycos. Dixons, who holds 80% of Freeserve stock, may no longer be able to conduct an auction of its subsidiary. Dixons bargaining position may be weakened by its insistence on a high of cash for the sale. T-Online has raised EUR 3bn in cash but wants to retain funds for future expansion.